Oil prices rose slightly in Asian trade on Friday but are set for a muted weekly finish as concerns over slowing U.S. demand and rising supply weighed on the market. Brent crude futures for November inched up 0.1% to $67.53 a barrel, while West Texas Intermediate (WTI) crude climbed 0.1% to $63.31. Both benchmarks gained around 1% for the week, reflecting mixed signals on global demand and supply outlook.
A stronger U.S. dollar—rebounding from three-year lows despite the Federal Reserve cutting interest rates—limited oil’s upside. The Fed signaled further rate cuts ahead, which could support long-term demand, but markets remained cautious as the U.S. labor market showed signs of cooling. Seasonal weakness in fuel consumption during the winter also raised doubts about sustained demand.
Geopolitical risks added volatility, with tensions between Russia and Ukraine fueling speculation about potential supply disruptions. However, optimism was tempered by fresh inventory data showing a sharp rise in U.S. distillate stockpiles, raising fears of weaker consumption.
On the supply side, Kazakhstan resumed exports through the Baku-Tbilsi-Ceyhan (BTC) pipeline after resolving contamination issues. This key route boosts Kazakhstan’s ability to export oil independently of Russia. Meanwhile, Nigeria lifted emergency rule in Rivers State, a vital oil hub previously plagued by militant attacks on pipelines. The move is expected to stabilize production and exports.
Market attention also turned to possible U.S. sanctions targeting Russian oil and its buyers, after President Donald Trump acknowledged difficulties in ceasefire negotiations. Traders are balancing risks of disrupted supply against concerns of oversupply in coming quarters.
Overall, crude prices remain rangebound as investors weigh slowing U.S. demand, rising inventories, stronger dollar pressures, and shifting global supply dynamics.


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